President Donald Trump’s controversial plan to create a nearly $1.8 billion compensation fund for alleged victims of government “weaponization” has been put on hold following strong opposition from Republican lawmakers and ongoing legal challenges.
The proposal, which emerged from a settlement between Trump and the Justice Department over a lawsuit involving his tax records, faced fierce criticism from members of his own party who feared it could result in taxpayer-funded payments to individuals involved in the January 6, 2021, Capitol riot.
According to sources familiar with the discussions, Senate Republicans made it clear to the White House that the fund would become a major obstacle to advancing other legislative priorities, including a $72 billion package aimed at funding Immigration and Customs Enforcement (ICE) and Border Patrol operations.
Senate Majority Leader John Thune reportedly told the administration that the proposal needed to be scrapped, while one White House source described lawmakers’ stance as an ultimatum.
The unusual pushback highlights growing signs of independence among some Republican lawmakers, particularly after Trump’s recent political interventions in key Senate races.
The fund was designed to distribute approximately $1.776 billion to individuals who claimed they had been targeted or harmed by government actions. Critics, however, argued that the plan lacked sufficient safeguards and could effectively become a political slush fund.
Concerns intensified when reports suggested some January 6 participants might qualify for compensation.
The prospect triggered bipartisan criticism, with several Republicans openly questioning the political and legal implications of the initiative.
Adding to the pressure, federal judges in Virginia and Florida issued rulings last week temporarily blocking the fund while courts review its legality. The pauses are expected to remain in effect through at least mid-June.
Although the Justice Department said it strongly disagrees with the court decisions, officials confirmed they would comply with the rulings while legal proceedings continue.
The controversy has also placed renewed scrutiny on acting Attorney General Todd Blanche, who is reportedly seeking permanent confirmation to lead the Justice Department.
Some lawmakers have questioned his handling of the issue after reportedly tense meetings with Senate Republicans.
Sources familiar with internal discussions said several administration officials are now attempting to distance the White House from the proposal, suggesting it originated within the Justice Department rather than Trump’s political team.
While the fund appears effectively frozen for now, Democrats remain skeptical that it has been permanently abandoned.
Senate Minority Leader Chuck Schumer said Democrats will introduce legislation aimed at preventing any future administration from creating a similar compensation program.
Trump, according to a source close to the matter, is unhappy with the setback but understands that shelving the proposal may be necessary to secure broader Republican support for his legislative agenda.
The dispute marks one of the most significant internal Republican confrontations of Trump’s second term and underscores the challenges facing the administration as it attempts to balance loyalty to the president with growing political concerns among congressional allies.
